Financial Markets Daily Report 13 February 2023
Risk aversion continued to set the tone during the last session of the week, fueled by a further upward revision in investors’ expectations for the likely path of policy interest rates ahead. These worries were compounded by the announcement from Russia that the country will cut its oil production by 500k barrels a day next month.
- Risk aversion continued to set the tone during the last session of the week, fueled by a further upward revision in investors’ expectations for the likely path of policy interest rates ahead. These worries were compounded by the announcement from Russia that the country will cut its oil production by 500k barrels a day next month.
- In this context, oil prices rose further, above 85 $/barrel for the Brent, and sovereign bond yields also went up, more notably across the eurozone periphery countries. Stocks closed the week with further losses, while the USD appreciated against peers, trading below 1.07 against the EUR.
- This week, the key data features US CPI inflation for January as well as the second release of eurozone Q4 GDP, both on Tuesday. The final January CPI reading for Spain is also released on Wednesday. In addition, there will be speeches from various Fed officials throughout the week.